What specific information does Hyper Kidz provide to franchisees that is considered confidential and protected by the covenants?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.1 You specifically acknowledge that, pursuant to this Agreement, you will receive valuable training and confidential information, including, without limitation, information regarding the marketing methods and techniques of us and the System.
You covenant that during the term of this Agreement, except as otherwise approved in writing by us your principals, you shall not:
12.1.1 Divert or attempt to divert any business or client of the business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System.
12.1.2 Own, maintain, advise, help, invest in, make loans to, be employed by, engage in or have any interest in any business other than the Hyper Kidz Businesses (including any business operated by you prior to entry into this Agreement), which business is of a character and concept similar to a Hyper Kidz Business, including a business which offers the same or substantially similar products and services (a "Competitive Business").
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees will receive valuable training and confidential information regarding the marketing methods and techniques of Hyper Kidz and its System.
This confidential information is protected by covenants within the franchise agreement. During the term of the agreement, franchisees are prohibited from diverting business or clients to competitors, or engaging in any actions that could harm the goodwill associated with the Hyper Kidz brand and System. Franchisees also cannot own, maintain, advise, invest in, or be employed by any business similar to Hyper Kidz, including those offering substantially similar products and services, without written approval from Hyper Kidz.
Franchisees must also preserve the confidentiality of all materials and information provided by Hyper Kidz, disclosing it only to employees or agents who need access for their work. Copying, duplicating, recording, or reproducing these materials without prior written consent from Hyper Kidz is strictly prohibited, ensuring that confidential information remains protected from unauthorized use or disclosure.